Kanger, FRIM to develop high value bamboo industry

PETALING JAYA: ACE-Market listed Kanger International Bhd is collaborating with Forest Research Institute Malaysia (FRIM) to jointly develop a high value bamboo industry in Malaysia.
In a filing with Bursa Malaysia yesterday, the company said it has entered into a three-year memorandum of understanding (MoU) with FRIM for the research and development, manufacturing and production of bamboo products.
The cooperation includes the establishment of a bamboo plantation on a commercial scale in Malaysia; technical and financial data to support the above-mentioned areas, and to the sales and marketing and use of bamboo; as well as research and development to improve bamboo products, manufacturing processes or in new uses or products.
“Kanger has been working on establishing a commercially viable bamboo plantation in Malaysia since pre-IPO. This collaboration with FRIM may be the final step towards that goal,” said Kanger deputy chairman Datuk Kuan Ah Hock.
Under the MoU, the collaboration will focus on the development of a high value bamboo industry in Malaysia, to the production of high value bamboo products and other bamboo products, suitable for structural use and construction materials.
It will also leverage on Kanger’s international sales network and experience in the bamboo industry to develop it as a new economic sector in Malaysia.
Kanger executive director Syed Hazrain Jamalullail said the bamboo industry in Malaysia is now mainly on agriculture or cottage industries, with low returns.
“With Kanger’s 13-year experience in the relatively new global bamboo market and in production of high value bamboo products, combined with FRIM’s agriculture and technical expertise, we aim to develop the bamboo industry in Malaysia into a significant sector of the economy,” he said in a statement yesterday.
“We are now able to replicate traditional hardwood timber products using sustainable bamboo and FRIM recognises the need for Malaysia to change to more sustainable materials such as bamboo as the replacement for timber,” he added.
According to Kanger, the MOU is in line with its objective of diversifying its earnings base and explore new markets by developing new bamboo related products and plantations.
“By leveraging on the expertise of FRIM, a reputable and leading government agency in Malaysia, Kanger envisages that a new bamboo industry sector in Malaysia can be developed at a faster pace and more quality and innovative products can be developed in the future,” it said.
Kanger and FRIM are expected to enter into more binding agreements in the future for the purposes of further collaboration. Both parties will establish a steering committee to review the implementation of the MOU.